Principal
Principal is the amount you originally borrow on a mortgage, and the remaining balance you still owe over time.
What Principal means
Each payment reduces principal a bit more as the loan amortizes. Paying extra toward principal shrinks the balance faster, shortens the term, and cuts total interest.
Florida example
A Florida borrower with a $350,000 starting principal who adds $200 a month toward principal can shave years off a 30-year loan and save tens of thousands in interest over its life.
What principal means
Principal is the amount you still owe on your loan, not counting interest. Each payment lowers it a little at a time.
As the principal drops, you build equity in your home.
Why it matters
Paying extra toward principal shrinks your balance faster and saves interest. Even small extra payments add up.
We show how extra principal payments help you. Apply now and we will map a payoff plan for you.
Related program: Learn more →
Verify the details for your own situation against these government and agency sources: CFPB Owning a Home guide and HUD homebuyer resources.